Meet Former European Central Bank Chief who thinks Bitcoin Isn’t Real

BTC $7,371.67 -0.09%
ETH $147.59 -0.34%
XRP $0.27 0.03%
USDT $1.02 -0.01%
BCH $211.10 0.06%

Meet Former European Central Bank Chief who thinks Bitcoin Isn’t Real

by Richard M Adrian - 12:29 PM Nov 11, 2019

meet-former-european-central-bank-chief-who-thinks-bitcoin-isnt-real

Former European Central Bank President Jean Claude Trichet states that Bitcoin lacks the features of currency and is purely speculative. The chief made the remarks during a November 10 Caixin Conference in Beijing.

Bitcoin is not the Future of Money

Jean noted that he is strongly against the use of bitcoin and expressed doubts in the currency becoming the future of money. In fact, since bitcoin lacks the characteristics of real money, hence:

“I am strongly against Bitcoin, and I think we are a little complacent. [...] The currency itself is not real, with the characteristics that a currency must have.”

Jean went on to explain that in whatever respects the art of cryptocurrency buying is purely on the basis of speculation. He went ahead to claim that a crypto asset should supposedly be backed by a real asset. Therefore, will always rely on fiat currency. Jean also addressed the massive speculation as “unhealthy” for business.

Special Drawing Rights (SDR)

Meanwhile, Jean also observed the Special Drawing Rights (SDR) that the International Monetary Fund (IMF) issues are more favourable and preferential. On the other hand, Jean expressed dissatisfaction with Facebook’s proposed Libra stablecoin. Nevertheless, the drawing rights he states, are backed by a basket of currencies similar to Libra. The basket included leading global currencies such as the US dollar, sterling pound, euro, yen and renminbi.

“I have great doubts of keeping control of monetary value in [the cryptocurrency] domain. [...] In the so-called new stable international currencies […] the SDR would be the right basket.”

Jean seems disappointed that even while the world is considering to turn away banknotes and coins; cryptocurrencies can never be the way forward. In another report, Mario Draghi, a former ECB president echoed similar statements claiming that ; crypto and stablecoins are not designed to function as suitable substitutes for fiat currency.

#bitcoin #Bitcoin (BTC) News #Crypto News #Cryptocurrency #Cryptocurrency Market #Cryptocurrency News

About The Author

Richard M AdrianBlockchain Analyst with a demonstrated history of working in the writing and editing industry. Skilled in WordPress, Editing, SEO Copywriting, Copy Editing, and Blog Marketing. When I am not writing, analyzing bulls/bears - I will be listening to music, reading a thrilling novella or hiking. Email me at Richardmadrian@gmail.com - And we could talk about anything - business or dragons.